Page 343 - DMGT308_CUSTOMER_RELATIONSHIP_MANAGEMENT

Customer Relationship Management

Notes most American and European manufacturers. The interactive e-Store front of the manufacturer
permits the customer to configure his own automobile in respect of the kind of upholstery,
music system, accessories, etc. that he prefers.
The customer preferences which were captured through the earlier interaction automatically
create work orders and the customized product is delivered. Even though the product is highly
customized, there is hardly any additional cost involved. More companies are focusing their
growth strategies around direct sales through the Net.

13.1.2 Most Affected Industries

Travel and transportation industry has been almost revolutionized by CRM. For them, CRM
makes the difference between being in business or out of it. Financial services, insurance,
investment banking, education and utilities are the other large scale adopters of CRM in the
services sector.
The concept of retailing has been redefined with CRM. Product industries are using it for
marketing as well as after sales support. Increasing number of product manufacturers are able to
retail directly, thanks to CRM.

Why should you adopt CRM?
CEOs are realizing those who are not able to come up with effective CRM strategies risk being
edged out of business. Customer is the king and the business strategies must be built for ensuring
customer loyalty. It costs six times more to create a new customer than to retain an old one.
1. Increased Sales Revenues

(a) Sales reps spend more time on productive calls and less on chasing information and
dry calls.
(b) Ability to penetrate and support wider geographical area.
(c) Sales transactions 24 hours, 7 days a week.
2. Increased Responsiveness

(a) Ability to respond to changing customer preferences in real time.
(b) Reduced leftover stocks, reduced business risk and zero budget planning.
3. Increased Win Rates
(a) Ability to concentrate resources on likely customers.
(b) Availability of customer preference data.
4. lncreased Margins
(a) Improved value-sell and reduced price-sell.
(b) Opportunity for cross-sell and up sell.
5. Reduced Cost

(a) Improved customer satisfaction ratings
(b) Personalized customer service.
(c) 24X7 service and support.
(d) Customized products.
(e) Improved information availability.

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